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Suppose that a typical individual works 2.5% fewer hours when the wage increases by 10%. In this case, labor supply elasticity equals: A. -2.5 B. 2.5 C. -4 D. 4 The Earned Income Tax Credit is a federal program that A. increases wages for the working poor. B. increases the wages of minorities. C. provides cash assistance to the non-working poor. D. provides in-kind assistance to minimum wage workers. E. provides cash assistance to firms that hire single mothers living in poverty.
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